U.S. stocks ended their strongest week of the year with record highs on Friday, as the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) surged on the back of President-elect Donald Trump’s victory and the Federal Reserve’s recent rate cut. The S&P 500 gained 0.4%, reaching a new peak as it briefly hit the 6,000 mark, while the Dow rose 0.6%, crossing the 44,000 threshold for the first time. The Nasdaq Composite (^IXIC) closed near flat, consolidating gains made earlier in the week.
Optimism about Trump’s economic policies bolstered investor sentiment, prompting a “Trump trade” wave of activity. However, some of the initial momentum cooled as the U.S. dollar (DX=F) and Treasury yields softened from post-election highs. Despite this, Wall Street’s major indexes continued to hit fresh milestones, following an expected interest rate cut from the Federal Reserve on Thursday.
Disappointing news from China’s latest $1.4 trillion fiscal stimulus plan, intended to refinance local government debt, cast a shadow over global markets, putting pressure on Chinese stocks and oil prices as investors expressed skepticism about its potential economic impact.
Friday’s session also marked notable moves in individual stocks: Nvidia (NVDA) joined the Dow, replacing Intel (INTC), in recognition of its growing dominance in AI and semiconductor technology. Meanwhile, Tesla (TSLA) crossed $1 trillion in market capitalization as shares climbed over 9%, and Trump Media & Technology Group stock surged over 10% after Trump announced he would retain his shares in the company, which hosts his social media platform, Truth Social.
